Pinterest Eyes 80K SF at SL Green, PGIM’s 11 Madison

Pinterest could be pinning down a sizable lease in Midtown South.

SL Green and PGIM Real Estate are negotiating with the tech firm for office space at 11 Madison Avenue, people familiar with the matter told Bloomberg. Pinterest is eyeing 80,000 square feet at the 2.3 million-square-foot property, putting the company in the running to be one of the larger tenants in the building.

Talks are ongoing and no deal has been finalized as the parties involved declined to comment to the outlet.

Last year, the San Francisco-based social media bookmarking site signed a lease for 21,500 square feet at Met Park East in Seattle, moving to the Beacon Capital Partners building from space being rented from a WeWork. Pinterest entered the Seattle market in 2016 with the opening of a sales and engineering office in the WeWork office.

SL Green acquired the full-block office property on Madison Avenue from the Sapir Organization and CIM Group in 2015 for $2.6 billion. A year after acquiring the building, SL Green sold a 40 percent stake to Prudential’s PGIM Real Estate for $480 million.

SL Green financed the acquisition with a $1.1 billion senior CMBS loan and $325 million in mezzanine debt; the securitization and subsequent reports from Kroll Bond Rating Agency allowed for a peek behind the curtains at the property.

As of March 2020, Credit Suisse was the dominant tenant at the property, according to the rent roll, occupying 1.3 million square feet while paying slightly below-market rates at $65 per square foot. The average base rent for the property at the time was $70.47 per square foot.

In 2021, liquor giant Beam Suntory — producer of Jim Beam and Maker’s Mark whiskeys — signed a 15-year lease at the 30-story building, taking roughly 100,000 square feet across the entire 12th floor.

— Holden Walter-Warner